BP (BP stock) joined rivals in posting bumper profits that have triggered new calls for energy companies to pay more taxes, more than doubling its third-quarter profit from a year earlier to $8.15 billion and expanding its share buybacks by $2.5 billion.
The London-based BP joins competitors Shell (SHEL), Exxon Mobil, and TotalEnergies (TTEF.PA), all of whom announced record profits last week and distributed a record $29 billion to shareholders.
Joe Biden, the vice president of the United States, warned major oil corporations on Monday not to engage in “war profiteering” or face more taxes if they don’t raise production.
In addition to $800 million in the government’s 25% windfall tax imposed in May, BP stated that it anticipates paying about $2.5 billion in taxes on its British North Sea operations this year.
In a budget statement due next month, the British administration of Prime Minister Rishi Sunak should consider expanding that windfall tax on oil and gas companies, according to Alok Sharma, the COP26 climate summit’s president.
According to Murray Auchincloss, BP’s chief financial officer, the company paid $5 billion in taxes globally in the third quarter at a rate of 37%.
Auchincloss declined to respond to Biden’s remark but noted that BP is putting more drilling rigs in the Gulf of Mexico and shale regions to increase output.
BP will repurchase $2.5 billion worth of shares after having already spent $7.6 billion this year. BP hiked its dividend by 10% during the quarter. BP has pledged to return 60% of its surplus income to shareholders.
According to calculations by Reuters, the big five Western oil and gas companies distributed a record $29 billion in dividends and share buybacks to investors in the third quarter.
By 1255 GMT, BP shares were up 0.6%, trailing the 1.4% increase in the larger European energy index (.SXEP).
“Today’s Q3 statistics were always expected to be political catnip if they were anywhere like as strong as Shell’s last week,” said Michael Hewson, chief market analyst at CMC Markets UK. “The BP share price is hovering near its highest levels this year.”
Although higher oil and gas prices have helped BP’s shares rise more than 45% this year, they have lagged behind gains made by rivals Shell and Exxon Mobil, and Chevron in the United States.
BP reported a $3.3 billion profit the previous year and earned $8.45 billion in the second quarter of 2022, a 14-year high.
Higher gas prices and “an extraordinary gas marketing and trading result” contributed to its most recent performance, which helped to overcome poorer refining profits and “average” oil trading.
The gas and low energy division’s earnings increased significantly from the second quarter.
Featured Image – Megapixl © Tktktk
Author Valerie Remorosa 
